Risk management specialist FTI Consulting (FCN -1.83%) delivered quarterly results that easily surpassed expectations and guided for a strong 2024. Investors are taking notice, sending shares of FTI up 17.3% as of noon ET.

Record revenue and earnings

FTI is a global advisor firm focused on helping organizations manage change and mitigate risk. Business was booming in the fourth quarter, with FTI reporting earnings of $2.28 per share on revenue of $924.7 million. Wall Street had expected earnings of $1.67 per share on sales of $840 million.

For the full year, revenue was up 15.2% to $3.5 billion thanks to high demand across all business segments. Full-year earnings came in at $7.71 per share, up from $6.58 per share in 2022.

"In 2023, we continued our sustained, multi-year growth trajectory and once again delivered record revenues and earnings," CEO Steven H. Gunby said in a statement. "These results reflect our continued ability to win in the two markets that matter most: the market for making a difference for clients and the market for great talent. That progress leaves me ever more confident about the future of our firm."

FTI expects revenue of between $3.65 billion and $3.79 billion in 2024, or about 7% growth at the midpoint. The company sees earnings coming in at between $7.75 and $8.50 per share for the year, in range with Wall Street's $8.20-per-share consensus estimate.

Is FTI Consulting a buy after its strong quarter?

FTI is now up more than 220% over the past five years, nearly tripling the performance of the S&P 500. Growth rates might vary from here, but it is easy to see how the business continues to build on this momentum over time.

FTI's core focus, areas like corporate restructuring and litigation guidance, are not areas that companies tend to skimp on even in a tough environment. The company also is having success boosting profitability over time. FTI recorded an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 13.8% in the quarter, up 190 basis points from 11.9% in the last three months of 2022.

With its services in demand and FTI doing a good job managing costs, there is good reason for investors to be intrigued by this stock's potential to go higher from here.